The price comparison website calculated that the typical premium stood at £892 in February.
However, there has been a month-on-month decline in the cost of car insurance since November 2023, when the price peaked at £951, according to Compare the Market’s Premium Drivers research.
The substantial increase in the cost of the insurance may in part be due to a rise in the cost of claims for insurers. Previously high inflation rates have impacted many areas of the motor repair industry, including the cost of spare parts, energy, and hiring specialist mechanics.
Young drivers – aged under 25 – have seen the largest annual increase in the cost of car insurance. The typical premium for motorists in this age group has risen by £648 year-on-year to £2,057 in February 2024.
Drivers aged 35-44 have seen the smallest increase in premiums. But even this group has seen the typical premium rise by 39% from an average of £509 to £706.
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Julie Daniels, motor insurance expert at Compare the Market, said: “The rising cost of car insurance is understandably causing concern for many motorists. Our research shows motor premiums have jumped by more than £250 year-on-year.
“For those concerned about the cost of driving, shopping around ahead of renewal is one of the best ways to save money on car insurance. We want to encourage motorists who tend more to stick with their existing insurer each year to compare prices to find the right deal for them.”
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